National Insurance Contributions and Orchestras

In 1998 the law changed bringing entertainers (actors, singers and musicians) generally within Class 1 National Insurance (employed) even where they are self-employed for tax purposes.

H M Revenue and Customs (HMRC) has learned that a number of orchestras have not operated Class 1 National Insurance on certain categories of musicians since 1998.

HMRC is currently discussing with the Arts Council, the Association of British Orchestras, Opera and Theatre Music Forum, National Musicians Union and the Department for Culture, Media and Sport the implications of the orchestras’ failure to deduct Class 1 National Insurance. The Association of British Orchestras and Opera and Theatre Music Forum will be writing to their members to explain the current position of the discussions and the action needed by orchestras.

Orchestras represented by the ABO and Opera and Theatre Music Forum should read the communication and in the first instance contact the ABO or Opera and Theatre Music Forum if they need more information. Orchestras not represented by the ABO or Opera and Theatre Music Forum which have concerns about their operation of Class 1 National Insurance should contact Keith Dixon of HMRC on 0161 261 3255 for advice.